5 Different Types of Entertainment Stocks to Invest in

People love their entertainment, and they spend more money on it than ever before, whether it’s binge-watching shows on Netflix, playing games on their phones, or taking the kids to theme parks. 

Entertainment has become a massive industry that smart investors can profit from because the whole sector has been turned upside down by technology over the past decade.

Streaming killed off DVD sales just as mobile games crushed the old console market, and social media gave ordinary people ways to make serious money from their content. Old media companies either adapted fast or got left behind, but the ones that survived had to completely rethink how they do business.

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1. Streaming and Digital Media Platforms

Netflix kicked off the whole streaming revolution back in 2007, and everyone else has been trying to catch up ever since because the beauty of streaming is those monthly subscription fees that keep rolling in every month, something traditional TV networks could only dream about. Disney saw how profitable this could be and launched Disney+ with their biggest franchises bundled together, which included Star Wars, Marvel, and Pixar, all in one service.

HBO jumped in with its own service built around Game of Thrones and DC superhero content, and even Apple decided to throw billions at the streaming game with Apple TV+ despite starting from absolutely nothing. The big loser in all this has been cable TV, which keeps hemorrhaging viewers every quarter because young people who grew up with YouTube and Netflix just won’t sit through scheduled TV programming anymore.

Netflix still dominates globally, but the competition gets fiercer every year as companies spend ridiculous amounts on content to stay competitive. The real money is being made in overseas markets, though, because countries like India and Brazil have massive populations just getting reliable internet access for the first time, and companies that crack those international markets can see their stock prices go through the roof.

2. Online Gambling and Casino Platforms

Online gambling exploded when governments started loosening regulations, and smartphones made betting incredibly easy. This forced traditional casinos to scramble and launch their own apps just to compete with online companies that already had better technology and user experience. 

Sports betting became legal across Australia and most US states, which created markets worth tens of billions every year, just as cryptocurrency opened up even more possibilities for online gaming platforms.

Sites like Coin Poker Australia show how digital currencies can work seamlessly with gaming to give players faster deposits and withdrawals, plus more privacy, and young people already use crypto for all sorts of things, so they’re comfortable using it for gaming too. 

This combination of crypto and gaming could completely reshape the entire industry because online poker has made a huge comeback through mobile apps that make the game much more social and accessible to casual players.

Virtual reality casinos are starting to pop up, though most people still find the technology too expensive and complicated. The biggest risk for all these companies is government regulation because politicians can change the rules overnight and wipe out billions in market value.

3. Gaming and Interactive Entertainment Companies

Video games make more money than Hollywood and the music industry combined these days because mobile gaming has completely changed everything, as simple games like Candy Crush proved you could build billion-dollar businesses without fancy graphics or complicated storylines. 

Activision built its empire on franchises like Call of Duty and World of Warcraft, which keep generating revenue years after launch through downloadable content and expansion packs that fans eagerly buy.

Electronic Arts figured out the perfect formula with sports games because they release new versions of FIFA and Madden every year, but then keep selling virtual player cards and upgrades all year long, which is like getting paid twice for the same game. 

Take-Two Interactive hit the jackpot with Grand Theft Auto V because that game came out over ten years ago and still makes hundreds of millions every year, proving that the right game can become a money machine.

Mobile gaming works completely differently because companies give away their games for free, then make money when players buy small upgrades and extras that might seem insignificant but add up to billions for companies that understand what makes people spend. 

Professional gaming has become legitimate entertainment, too, because gaming tournaments pack stadiums and draw millions of viewers online through sponsorship deals and merchandise sales that create entirely new revenue streams.

4. Traditional Media and Film Studios

Despite all the streaming disruption, old media companies still own incredibly valuable assets that nobody else can replicate. Warner Bros. has DC Comics and Harry Potter, and Paramount owns Star Trek and Top Gun, along with a massive film library that goes back decades. 

Movie theatres turned out to be more resilient than anyone expected too because big blockbusters still make billions at the box office, and some movies just work better on huge screens with surround sound.

The streaming wars actually helped these old companies because suddenly everyone wanted to license their classic content. Shows like Friends and The Office were worth hundreds of millions to streaming platforms desperate for popular content. 

News and sports remain incredibly valuable because they’re the only content that people still watch live. ESPN charges more than any other cable channel, and local news stations keep their audiences even as more people cancel cable subscriptions.

5. Theme Parks and Location-Based Entertainment

Disney and Universal run some of the most profitable businesses in the world with their theme parks because they make billions from ticket sales, overpriced food, merchandise, and hotel rooms. Though the initial investment is enormous, once a park is established, the cash flows are incredible. 

Nobody else has been able to replicate the theme park model successfully because you need popular characters, operational expertise, and massive upfront capital that most companies simply cannot access.

Smaller entertainment companies run bowling alleys, laser tag centres, and arcade venues that generate decent returns and often pay dividends to shareholders who want steady income. 

The real growth opportunity is international expansion, especially in Asia, where millions of people are joining the middle class every year, and these families have disposable income for the first time and want to spend it on entertainment experiences.